Copy Trading vs Manual Trading

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Copy Trading vs Manual

Copy-trading is becoming more and more popular. Investors can follow ready strategies provided by seasoned traders currently. While some investors break their heads over technical analysis and try to avoid excessive risks others spend minimum time on copying trades of successful traders. Which way to choose, Copy Trading vs Manual ? We will find it out in this article on Copy Trading vs Manual .

Why do people copy trades? Copy Trading vs Manual –

Copy-trading is a special trading method allowing users to copy successful trader’s positions following their strategies. To do that, they need to connect to special copy trading services. By choosing a particular service, investors can choose managing traders whose strategies they will follow.

Users copying trades don’t need to spend much time analyzing markets by using technical or fundamental forecasting methods, calculating risks, and waiting for a moment to open and close positions. All this should be borne by a managing trader. If the latter has a successful trade, the profit goes to the investor’s account as well. The commission is deducted automatically from the investor’s account.

This way of investing is the magic pill for new traders who still have no skills nor experience and those who are always busy and do not have enough time to conduct market analysis. Beginner traders don’t need to buy millions of trading courses and try trading on their own.

They will be able to get passive income right away. Everything they need to do is to choose a reliable service and a good managing trader. When newcomers copy trades, they can see what is inside those trading systems and get the necessary knowledge to apply it in the future to profit on their own.

Mirror trading services are a must-have for all those who want to have passive income but do not have enough time to trade on their own. Not all of us have enough time to learn more about the stock market mechanisms. Moreover, some investors can’t spend much time analyzing the latest events.

To start using any copy-trading service, one needs to create an account there. Those platforms are called copy-trading services. Their number is growing each year. To choose one, you need to learn its history as well as the conditions you need to meet to start investing including the minimum required amount, the leverage, etc.

Copy-trading: pros and cons- Copy Trading vs Manual

The pros of copy-trading:

  1. Each beginner trader can get high profits. They don’t need to spend much time or effort to learn about trading. Managing traders analyze markets on their own.
  2. No need to spend much time on investing. One has to deposit funds and choose the right managing trader.
  3. Investors can either copy trades or open trades on their own.
  4. Many services provide investors with the opportunity to choose several strategies simultaneously.
  5. One can get knowledge by analyzing and managing traders’ strategies.
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The cons of copy-trading are:

  1. There is no way to control risks. All your profits depend on the managing trader you choose.

The best copy-trading services

The number of those copy trading services increases constantly. This industry includes famous platforms as well as some newest ones. Let’s have a closer look at the 5 most popular and innovative services.

SpyStream

This is a comparatively new social trading service, created in 2021. The platform has a good reputation for being a reliable service, which implements modern technologies in trading and investments. Apart from a standard set of features, they offer analysis tools that are created by those traders with the most successful strategies.

Advantages of using SpyStream:

  1. No additional fees for using the service. The amount of commission does not exceed $5.
  2. Users can invest in various strategies provided by multiple traders.
  3. Ready analysis tools made by the most successful traders.

Disadvantages of SpyStream:

  1. The company is still young, it was established in 2021.

eToro

This copy-trading service was established in 2006. The platform is in demand having users from various parts of the World. According to the official data from their website, the number of eToro users exceeds 12 million. The main advantage of this platform is its user-friendly interface.

The platform offers a minimum of useless information and a maximum of action. This service is very easy to operate. Even those who have no experience in trading or investing can deal with it. eToro is available for either desktop and mobile devices.

Pros of using eToro:

  1. There are either PC and mobile versions of the website.
  2. Low entrance amount. One needs to invest $200 to start.
  3. Extensive experience in providing financial services. They have been working for more than 15 years already.

eToro cons:

  1. Spreads are above average.
  2. Commissions are above average as compared to many other social trading platforms.

PrimeXBT

This is a comparatively young copy-trading service established in 2018. They have managed to become popular among beginner and skilled traders. Traders and investors from 150 countries use this service nowadays.

The minimum entrance amount is low here. The platform allows clients to start from $60, which is a good opportunity for beginner investors to try the service without risking bigger amounts. All PrimeXBT customers can invest by using leverage. There is only one thing that makes this service uncomfortable. The interface is overloaded. While trying to add the most necessary features to this platform, the creators of PrimXBT have forgotten about the usability.

It is not easy to use this service. One will have to spend much time looking for all the necessary information. The platform goes out of order sometimes. However, even with all those disadvantages, PrimXBT allows users to use stop-losses and take-profits.

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Pros of using PrimeXBT:

  1. Small minimum deposit. You need to invest $60+ to start.
  2. Investors can benefit from leverage.
  3. The set of tools includes stop-losses and take-profits.

Cons of using PrimeXBT:

  1. One can deposit using BTC, ETH, USDC, or USDT only.
  2. The interface is very uncomfortable, some technical issues may occur during your PrimeXBT experience.

Naga

This copy-trading service offers a wide range of trading assets including stocks, commodities, cryptocurrencies, etc. The platform was established in 2015. All those investors who use the service for the first time say that this website is not like all other copy-trading services.

First of all, there is a rating of managing traders, which updates several times per day. The first places in this rating are given to those traders who offer the best trading strategies. This means you don’t need to spend much time and apply much effort to guess who is the best. The only thing you need to do is to look at the rating and choose the trader with the best strategy.

And that’s not all. Naga conditions have little in common with rival services. They charge customers with two types of commissions – for all closed positions and money withdrawal.

And last but not least, you can’t choose between several managing traders. Investors can copy trades of a single trader only. No way for diversification there. It is not easy to choose the best strategy from scratch.

Pros of using Naga:

  1. There is a special rating allowing investors to choose among the best strategy providers.
  2. This service is available for either desktop and mobile devices.

Naga cons:

  1. There is an additional commission for money withdrawals.
  2. One can’t choose more than 1 strategy.
  3. High entrance requirements. You need to invest $250 at least to start.

Final words

Many investors try to trade on their own. Some of them are successful but to see the profits growing, one needs to spend much time forecasting price fluctuations and apply much effort to create a good strategy. Traders should always be aware of the current market situation, analyze the activities of a particular company and the whole industry.

Those who don’t have enough skills or time to make a deep market analysis choose copy-trading services. They allow investors to copy trades of seasoned traders. This way of investing is the best choice for all those who want to get passive income without applying much effort. You don’t need to spend much time forecasting market prices or waiting for a good moment to open and close market positions. The only con of this way of investing is that one can’t control their risks. The most popular copy-trading services are eToro, PrimeXBT, Naga and recently appeared SpyStream platform. Which one to choose? Share your opinion in the comments.

 

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